Hawker Energy Inc. (OTC: HWKR) said Jan. 21 that it signed a share purchase agreement to acquire all of the shares of TEG Oil & Gas USA Inc. from Sefton Resources Inc. (OTC: SFNRF). TEG owns the Tapia Canyon and Eureka oil fields in California, Hawker added.

Hawker will issue 3 million of its common shares and a five-year share purchase warrant for 5 million additional shares at 25 cents each, the company said. The company and its subsidiary gave about $1.7 million in advances to TEG since April 2014, pursuant to a secured subordinated note.

Tapia Canyon Field is about 40 miles north of Los Angeles and production is from the Yule Reservoir, which is about 1,000 feet deep. TEG holds four oil leases covering 280 gross acres within the field, and there are about 3.5 million barrels of proved net recoverable resources, the company said.

The Eureka Field covers about 1,600 gross acres in Ventura County, about 25 miles west of the Tapia Canyon Field. “The property has exploration potential,” TEG added.

Bank of the West is TEG’s senior lender. The transaction is scheduled to close Jan. 31. It must be approved by Sefton’s shareholders, Hawker said. This transaction “amends and replaces” an earlier transaction described in November filings, due to “a significant decline in oil prices and other factors,” the company added.

Redondo Beach, Calif.-based Hawker Energy Inc. acquires oil properties in Southern California.